Yum Brands to refranchise KFC stores in Turkey

December 29th 2016 | Multiple countries | Food and drink | Yum!

Event

Yum Brands Inc is planning to refranchise its KFC-brand stores in Turkey, according to a Bloomberg report on December 28th.

Analysis

The US-based fast-food company told the newswire in an emailed statement that it will "increasingly grow through its franchisees" in Turkey, without disclosing further details. The move is in line with Yum Brands's global strategy of transferring restaurant ownership to franchisees. The owner of the Pizza Hut and Taco Bell chains had said in October that it aimed to increase this proportion to 98% by the end of fiscal 2018, Bloomberg noted. The company was 77% owned by franchisees at that time.

Last year, Yum had said that it will open 400 new KFC stores in Turkey over five years and that half of these stores would be run by franchisees, with the other half owned by Yum itself. Yum Brands currently runs 104 KFC stores in the country.

Other foreign food-chains operating in Turkey include Yum's rivals, McDonald's Corp and Burger King Worldwide Inc. The sector is dominated by traditional independent food-service outlets, but sales have grown sluggishly compared with foreign chains. The Economist Intelligence Unit expects growth in foodservice sales in Turkey to last as more young people are influenced by Westerners' fondness for fast food.